Artificial intelligence (AI) is expected to remain an attractive investment theme over the next 12 months as global economic growth remains resilient and corporate earnings continue to strengthen, according to MFC Asset Management.Managing director Thanachot Rungsitthiwat said global markets are supported by five major drivers: the direction of interest rates and monetary policy, resilient corporate earnings, AI as a global trend, capital rotation into companies with visible earnings growth, and easing geopolitical tensions.
The asset manager expects the global and US economies to continue expanding, while recession risks remain relatively low. Earnings of large-cap corporations are expected to stay strong, with AI, infrastructure and energy emerging as key growth sectors.
However, investors should remain cautious about inflation volatility, uncertainty over future interest rate decisions, the ability of AI companies to monetise their technologies, the US midterm elections, global trade tensions and geopolitical conflicts.
Mr Thanachot advised investors to focus on quality companies with sustainable earnings growth while maintaining diversified portfolios.
MFC assessed the AI investment story as expanding beyond software and applications to the infrastructure that powers the technology. The company expects the global memory chip market to grow from roughly US$214 billion in 2025 to $1.68 trillion by 2028, driven by rising investment in AI infrastructure and data centres.
